Zillow is reportedly in talks to buy its biggest rival Trulia for roughly $2 billion according to Bloomberg. Both are public, though Zillow is the more valuable company by roughly 3X.
Zillow and Trulia are the number one and two US real estate sites respectively. Depending on whose list you consult either Yahoo Homes or Realtor.com are next. Realtor.com is operated by the National Assn of Realtors and would be the only remaining true competition to a “Zillia” combination. (Yahoo Homes is a distributor of Zillow content and advertising.)
According to June comScore data, cited by Bloomberg, together Zillow and Trulia represented “about 89 percent of all traffic to the 15 most-visited real estate sites.” Bloomberg also says the deal could be announced next week.
Zillow would likely be the surviving brand unless the company decides to maintain the Trulia site as a subsidiary entity. There’s an argument for doing that although it’s less efficient for the company to do so.
Assuming the rumors are true, it will now probably cost Zillow more than $2 billion for Trulia. Both companies’ shares have risen on the takeover rumors.